The marked price of a ceiling fan is 4,200 and the shopkeeper allows a discount of 5% on it. If his profit is 14%, then the cost price of the fan is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. ₹3,500.
The marked price of a ceiling fan is Rs. 4,200
The shopkeeper allows a discount of 5% on it. His profit is 14%
we know that,
Discount percentage = (Discount/market price) × 100 and,
Selling price = market price - discount
Now, according to the question
He got a discount of, 4200 × 5/100 = Rs 210
The selling price is 4200 - 210 = Rs 3990
So the cost price will be, (100/114) × 3990 = Rs 3500